By Tony Obiechina, Abuja
The new Board of the National Insurance Corporation of Nigeria better known as NICON Insurance formally took over the reins of power with its maiden Board Meeting at the Corporation’s head office in Abuja on Monday, amidst tight security.
This is sequel to the approval the new board and management of NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re) by the National Insurance Commission (NAICOM).
According to a statement by AMCON Head of Corporate Communications Department, Mr Jude Nwauzor, the change is to enhance the smooth running, efficient and effective management of the two firms.
“The reason for the changes in the board and management of the two insurance firms is sequel to the takeover of the major investor’s interests in the two organisations by the Asset Management Corporation of Nigeria (AMCON), and the Bureau for Public Enterprises (BPE) is working in partnership with AMCON to bring the much-needed stability in the operation of the organisations”, he stated.
Addressing NICON management staff, led by the Deputy General Manager (DGM), Corporate Advocacy, Mr.Kunle Adewale, the interim Board Chairman, Alhaji Lamis S. Dikko who led other Board members called for cooperation with the Board to reposition the insurance company which he described as a national legacy.
He said the meeting was a prelude to last Friday’s meeting of the Board where far-reaching decisions, including the immediate termination of the appointments of the erstwhile Managing Director and Executive Directors of the insurance company were taken.
Dikko said the mandate of the new Board is to preserve NICON Insurance as a going concern until a new investor comes aboard as the previous owner had woefully failed to sustain and maintain the organisation.
He said all staff that were desirous to stay back and work for the good of the organisation had nothing to fear but to support the new board to turn around the fortunes of the company.
In a statement by the Head of Public Communications, Amina Tukur Othman on Tuesday, the Director General of the Bureau of Public Enterprises (BPE), Mr. Alex A. Okoh, also a board member, lamented the decay at the place and said it was one of the few bad cases of privatisation in the country.
He regretted that the enterprise which was a going concern before privatisation was grossly mismanaged and appealed to the management and staff to collaborate and cooperate with the Board on its rescue mission to bring NICON insurance to operational vibrancy and on a pedestal to divest again.
Also speaking, the interim Managing Director, Mr. John Abuh Oyidiih charged the workers to cooperate with the Board and management to reclaim the lost glory of the insurance company “which is an institution and can’t be allowed to go down”, adding that “you do not need to hold an allegiance to any individual but the institution”.
It would be recalled that the Board members had arrived the company’s premises as early as 7:30am but could not gain access to the Board Room as it was under lock while the only functional elevator in the building was shut down. It was not until some of the Management workers sauntered in as from 8:00am that the elevator was eventually switched on and the Board Room opened and cleaned up for the Meeting.
NICON Insurance was privatised in 2005 with the core investor having 70% shares with the Federal Government retaining 30 percent. The Federal Government shares were later diluted but the fortunes of the company continued to decline with most of the assets used as collateral to collect loans from banks.
This prompted the Asset Management Corporation of Nigeria (AMCON) to take over affairs of the company, a decision the core investor went to court to challenge. The court ruled in favour of AMCON but the investor went on an appeal which the court asked the parties to maintain the status quo leading to Monday’s take over by the new Board.
Meanwhile, the new board of NICON Insurance Limited has Mr Lamis Shehu Dikko FIoD as Chairman, Dr. Henry Uko Ationu, ACIIN as Managing Director/Chief Executive Officer and Mr John Abuh Oyidih FCA ACIIN as Executive Director, Finance & Admin. The insurance firm also has Mr Alexander Ayoola Okoh, the Director-General of Bureau for Public Enterprises (BPE) as Non-Executive Director and Mr Ahmed Dahiru Modibbo FIBA ACIS as Non-Executive Director (Independent).
Similarly, the board and management of Nigeria Reinsurance Corporation has Mr Mela Audu Nunghe SAN as Chairman, Mr Olugbenga Falekulo ACII serves as Managing Director/Chief Executive Officer and Mr Olusegun Ilori FCA ACIIN comes in as Executive Director, Finance & Admin. Mr Alexander Ayoola Okoh, the Director-General of Bureau for Public Enterprises (BPE) comes in as Non-Executive Director while Mrs Yvonne Isichei MIoD, FCIB joins as Non-Executive Director (Independent).
According to the AMCON statement, the reconstitution of the board and management team of two insurance institutions in Nigeria is to ensure that the firms continue in their quest for transparent and accountable management of insurance in the country, and continue to deliver value to its stakeholders.
NICON Insurance Limited, which is one of Africa’s leading Insurers in the country was originally owned by the Federal Government of Nigeria. The Corporation was established by Decree No.22 of 1969 (now Cap 263 law of 1990 as amended) with the main objective of assisting in the development of the insurance industry in Nigeria and specifically to ensure that Federal Government assets and property are fully protected by way of insurance.
However, consequent upon the commencement of the second phase of the Federal Government Privatisation Policy, NICON Insurance was privatised in December 2005. With an asset base of N46.9bn gathered over a 50-year period of operation, many branches, and regional offices, it is therefore modest to classify NICON as a colossus in the insurance and other financial services sector.
Nigeria Reinsurance Corporation on the other hand was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations on January 1st, 1978, as Nigeria’s flag reinsurer, wholly owned by the Government of the Federal Republic of Nigeria. In 2002, the Corporation was transformed from being a Federal Government wholly owned Corporation to a privatised company with the government retaining some shares.
The Corporation, which has over 40 years of operations is in the business of assuming risks, providing reinsurance services and risk management solutions to its clients.
